Holding period of {{ property.holding_period }} years and discount rate of {{ property.discount_rate | number_format null 2 }}% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore don't provide such an exact information.

This chart shows the process of accumulation of the equity which belongs to the investor. There is some equity right from the beginning - the down payment. Over the time the equity is rising by paying off the principal of the mortgage and also by appreciation over the years.Basically all the green parts is the cummulative equity belonging to the investor and the red part belongs to the bank.

Sale Proceeds

In the resale analysis we do not include any calculation for taxes that might be owed on sale of the property. The tax laws for the resale are rather complex and subjected to frequent changes, and are different in every country.

This charts shows Net Present Value (NPV) when property is sold in various years, i.e. when sold in 5th year, the NPV is calculated from 5 years of Cash Flow (including the selling price) and this NPV is displayed in year 5. Optimal holding period can be estimated, using this method - when NPV is the highest. Please note that appreciation growth can change these numbers greatly. It sometimes makes sense to sell the property even before the end of the mortgage term.